Avnet Partner Solutions, IBM Americas is First Distributor to Achieve

    Business Editors/High-Tech Editors
    IBM PartnerWorld

    LAS VEGAS--(BUSINESS WIRE)--March 1, 2005--Avnet Partner Solutions, IBM Americas, the leading value-added distributor of IBM enterprise computing products, storage, software and services, and a division of Avnet Inc. (NYSE:AVT), today announced a number of significant performance milestones as IBM's largest worldwide distributor. Avnet is the first distributor to achieve $100 million in SMB (small and medium-sized business) Software sales and IBM Global Services.
    "Being the first distributor to achieve $100 million in SMB Software sales and IBM Global Services is truly significant to Avnet and our partner community," said Fred J. Cuen, president of Avnet Partner Solutions, IBM Americas. "IBM is looking to its channel partners to take the lead in developing the great potential of the SMB market. Thanks to the efforts of our partners, we are providing the solutions and services clearly needed in the small and medium-sized business market. IBM Software and Services are at the heart of these offerings."
    Software and services are quickly becoming two of Avnet's fastest growing lines of business. The growth in software and services is driven by the demands of the SMB marketplace for technology solutions that solve its business problems. Avnet has made significant investments in marketing and solution enablement resources to drive growth for its partners, including sales training, enablement materials and marketing through Avnet's Integrated Marketing Services program (AIMS). By enabling partners to sell effectively in the SMB market, Avnet partners have experienced greater success and, in turn, have made significant investments to help drive growth in this segment.
    "Being successful in our industry is more and more about providing true business value through bundled solutions," agreed Devi Gupta, director of strategic marketing and IBM alliance manager for Prolifics, an IBM Business Partner specializing in WebSphere, portal and business integration solutions to companies around the globe. Prolifics is also one of only three service providers retained by IBM to deliver WebSphere solutions to the market. "We have been reselling IBM Software into the SMB space since 2001, and have grown our business an average of 150% each year. Our partnership with Avnet has allowed us to focus more time and energy on our value-added services. Whether it is co-funding marketing activities such as webinars and direct mail, working with us on creative financing to meet end user requirements, or providing classroom-style sales and technical training, Avnet's support of IBM Software and the SMB market has allowed us to be more responsive to our customers, and has played a definite part in our growth and success."
    Incorporating services is key to the development and execution of a successful solution sales strategy. It was Avnet's focus on educating partners on the sales opportunity in services and making additional resources available to their solution providers to grow this important area that helped both Avnet and IBM Global Services achieve a record year, according to Sam Maatallah, director of channel services, IGS Americas. "Avnet's services performance in 2004 was outstanding and represents the highest gross revenue contribution to IBM Global Services ever by a Business Partner, reflecting year-to-year growth of over 30 percent," said Maatallah. "Avnet's commitment to operational excellence as well as their implementation of regional services sales leaders led the way to a record fourth quarter and record year. IGS is committed to teaming with channel partners to deliver the solutions and services that end users require. Avnet has worked side by side with us to support our efforts in this important and growing market."
    The formation of its Aftermarket Services group is another way that Avnet is looking to help partners grow their services revenue and increase customer satisfaction while removing costs from their businesses. Aftermarket Services is a fee-based offering in which Avnet contacts end user customers on behalf of its resellers. In addition to improving customer retention, maintenance contracts are one of the most profitable growth opportunities for resellers. Increasing services attach rates results in a significant increase in profitability and higher customer satisfaction.

    About Avnet Partner Solutions

    Headquartered in San Antonio, Avnet Partner Solutions, IBM Americas is the industry-leading, value-added distributor of IBM enterprise servers, storage, software and services, marketing exclusively to the reseller channel in the United States, Mexico and Canada.
    Avnet Partner Solutions, IBM Americas is part of the Avnet Technology Solutions operating group of Avnet Inc. Avnet enables success from the center of the technology industry, providing cost-effective services and solutions vital to a broad base of more than 100,000 customers and 250 suppliers. The company markets, distributes and adds value to a wide variety of electronic components, enterprise computer products and embedded subsystems. Through its premier market position, Avnet brings a breadth and depth of capabilities that help its trading partners accelerate growth and realize cost efficiencies. Avnet generated more than $10 billion in revenue in fiscal 2004 (year ended July 3, 2004) through sales in 68 countries. Visit www.avnet.com/

    Product and service names mentioned herein are the trademarks of their respective owners.

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CONTACT: Avnet Michelle Gorel, 480-794-6943 michelle.gorel@avnet.com

KEYWORD: ARIZONA TEXAS NEVADA MEXICO INTERNATIONAL CANADA LATIN AMERICA TRACK INDUSTRY KEYWORD: SOFTWARE NETWORKING HARDWARE TRADESHOW PRODUCT SOURCE: Avnet Partner Solutions, IBM Americas

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